ax-20230727

Axos Financial, Inc. Announces 52% Growth in Diluted EPS to $1.46

Net Interest Income Increased 23% in Quarter Ended June 2023

LAS VEGAS, NV – (BUSINESS WIRE) – July 27, 2023 – Axos Financial, Inc. (NYSE: AX) (“Axos”), parent company of Axos Bank (the “Bank”), today announced unaudited financial results for the fourth fiscal quarter and full fiscal year ended June 30, 2023. Net income for the quarter was $87.4 million, an increase of 50.9% over net income of $57.9 million for the quarter ended June 30, 2022. Earnings per diluted share for the quarter were $1.46, an increase of $0.50, or 52.1%, as compared to earnings per diluted share of $0.96 for the quarter ended June 30, 2022.

Adjusted earnings and adjusted earnings per diluted common share (“adjusted EPS”), non-GAAP measures, which exclude non-cash amortization expenses and non-recurring costs related to mergers and acquisitions, and other non-recurring costs, increased 32.3% to $89.4 million and 33.9% to $1.50, respectively, for the quarter ended June 30, 2023 compared to $67.6 million and $1.12, respectively, for the quarter ended June 30, 2022.

Fourth Quarter Fiscal 2023 Financial Summary:


	Three Months Ended June 30,
(Dollars in thousands, except per share data)	2023		2022		% Change
Net interest income	$	203,754	$	165,410	23.2	%
Non-interest income	$	32,705	$	27,100	20.7	%
Net income	$	87,356	$	57,896	50.9	%
Adjusted Earnings (Non-GAAP)1	$	89,431	$	67,616	32.3	%

Diluted EPS	$	1.46	$	0.96	52.1	%
Adjusted EPS (Non-GAAP)1	$	1.50	$	1.12	33.9	%

1 See “Use of Non-GAAP Financial Measures”

For the fiscal year ended June 30, 2023, net income was a record $307.2 million, an increase of 27.6% over net income of $240.7 million for the year ended June 30, 2022. Earnings per diluted share was $5.07, an increase of $1.10, or 27.7%, as compared to earnings per diluted share of $3.97 for the year ended June 30, 2022.

“We achieved record earnings and maintained strong credit quality and liquidity in the three and twelve months ended June 30, 2023,” stated Greg Garrabrants, President and Chief Executive Officer of Axos. “Double-digit growth in net interest income and a net interest margin above the high end of our long-term target were the primary contributors to our strong results. Our credit quality remains resilient, supported by our diverse, asset-based lending at low loan-to-values. Our strong balance sheet, with a modest unrealized loss on our securities portfolio equal to less than 0.5% of our shareholders’ equity and a growing deposit base generated by a variety of consumer and commercial banking and securities businesses, positions us well for continued growth.”

“Earnings per diluted share increased 52% year-over-year to $1.46 in the fourth quarter of fiscal 2023, which included $0.08 per diluted share primarily attributed to $5.2 million of one-time tax credits,” stated Derrick Walsh, Executive Vice President and Chief Financial Officer. Even without these non-recurring benefits, our earnings per diluted share would represent year-over-year growth of 44%. Our reported net interest margin of 4.19% and 4.35% for the three and twelve months ended June 30, 2023 was negatively impacted by approximately $1.2 billion of excess liquidity. Excluding the excess liquidity, our net interest margin would have been 4.39% and 4.42% for the fourth quarter and full year 2023, respectively.”

Other Highlights:

•Net loans for investment totaled $16.5 billion at June 30, 2023, an increase of $0.6 billion, or 15.7% annualized, from March 31, 2023

•Deposits increased $0.4 billion, or 9.2% annualized, between March 31, 2023 and June 30, 2023

•Approximately 90% of total deposits were FDIC-insured or collateralized at June 30, 2023

•Pretax income for the Securities Business was $15.5 million and $59.6 million for the three and twelve months ended June 30, 2023

•Percentage of non-performing loans relative to total loans was 0.52% at June 30, 2023, down from 0.60% at March 31, 2023

•Unrealized losses of $9.3 million on the available-for-sale securities portfolio was less than 0.5% of stockholders’ equity at June 30, 2023; no securities were classified as held-to-maturity

•Tier 1 capital to risk weighted assets was 11.63% for the Bank and 10.94% for Axos Financial, Inc. at June 30, 2023, up from 11.55% and 10.71%, respectively, at March 31, 2023

•Book value increased to $32.53 per share, up 18.4% compared to June 30, 2022

•Repurchased $17.7 million of common stock during the quarter ended June 30, 2023

Fourth Quarter Fiscal 2023 Income Statement Summary

Net income was $87.4 million and earnings per diluted share was $1.46 for the three months ended June 30, 2023 compared to net income of $57.9 million and earnings per diluted share of $0.96 for the three months ended June 30, 2022. Net interest income increased to $203.8 million, up 23.2% for the three months ended June 30, 2023 compared to the three months ended June 30, 2022, primarily due to higher rates earned and higher average balances in the loan portfolio, partially offset by higher rates paid on deposits and increased deposit balances.

The provision for credit losses was $7.0 million for the three months ended June 30, 2023 compared to $6.0 million for the three months ended June 30, 2022, primarily due to loan growth, changes in the macroeconomic environment and changes in loan product mix.

Non-interest income increased to $32.7 million, up 20.7%, for the three months ended June 30, 2023 from $27.1 million for the three months ended June 30, 2022. The net increase was primarily due to a $8.9 million increase in broker-dealer fee income and a $1.5 million increase in banking and service fees, partially offset by a $2.6 million decrease in prepayment penalty fee income and a $1.5 million decrease in mortgage banking income.

Non-interest expense, comprised of various operating expenses, increased 7.3% to $112.5 million for the three months ended June 30, 2023 from $104.8 million for the three months ended June 30, 2022. The net increase was primarily driven by an increase in salaries and related costs of $11.0 million and higher advertising and promotional expenses of $4.6 million, partially offset by lower general and administrative expenses, reflecting the absence of an $11 million charge due largely to a one-time resolution of a contractual claim in the prior year quarter.

Our effective tax rate was 25.34% for the three months ended June 30, 2023 compared to 29.15% for the three months ended June 30, 2022. The lower tax rate for the three months ended June 30, 2023, was primarily due to the impact of one-time income tax credits recognized in the current quarter.

Full Year Fiscal 2023 Highlights

•Net income reached a record $307.2 million, an increase of 27.6% compared to the fiscal year ended June 30, 2022

•Earnings per diluted share outstanding were $5.07, up 27.7% from $3.97 in the fiscal year ended June 30, 2022

•Deposits increased by $3.2 billion, or 22.8%, to $17.1 billion during the fiscal year ended June 30, 2023

•Net interest margin for the Banking Business segment increased to 4.48% for the fiscal year ended June 30, 2023 compared to 4.36% for the fiscal year ended June 30, 2022

•Efficiency ratio was 49.48% for the fiscal year ended June 30, 2023 compared to 50.25% for the fiscal year ended June 30, 2022

•Return on average assets increased to 1.64% for the fiscal year ended June 30, 2023 from 1.57% for the fiscal year ended June 30, 2022

Balance Sheet Summary

Axos’ total assets increased $2.9 billion or 16.9% to $20.3 billion at June 30, 2023 from June 30, 2022, primarily due to an increase of $2.4 billion in loans held for investment and an increase of $0.8 billion in total cash held. Total liabilities increased $2.7 billion to $18.4 billion at June 30, 2023 from June 30, 2022, primarily due to an increase of $3.2 billion in deposits, partially offset by a $0.3 billion decrease in securities loaned. Stockholders’ equity increased by $274.2 million, or 16.7%, to $1.9 billion at June 30, 2023 from $1.6 billion at June 30, 2022. The increase was primarily the result of net income of $307.2 million and $20.0 million of stock-based compensation activity, partially offset by the repurchase of $49.3 million of common stock.

The Bank’s Tier 1 capital ratio was 11.63% at June 30, 2023 compared to 11.24% at June 30, 2022.

Conference Call

A conference call and webcast will be held on Thursday, July 27, 2023 at 5:00 PM Eastern / 2:00 PM Pacific. Analysts and investors may dial in and participate in the question/answer session. To access the call, please dial: 877-407-8293. The conference call will be webcast live and both the webcast and the earnings supplement may be access at Axos’ website, http://www.axosfinancial.com. For those unable to listen to the live broadcast, a replay will be available until August 27, 2023, at the Axos Financial website and telephonically by dialing toll-free number 877-660-6853, passcode 13739708.

About Axos Financial, Inc. and Subsidiaries

The condensed consolidated financial statements include the accounts of Axos Financial, Inc. and its wholly owned subsidiaries, Axos Bank and Axos Nevada Holding, LLC (“Axos Nevada Holding” and collectively, the “Company”). Axos, the Bank and Axos Nevada Holding comprise substantially all of the Company’s assets and liabilities and revenues and expenses. Axos Nevada Holding wholly owns its subsidiary Axos Securities, LLC, which wholly owns subsidiaries Axos Clearing LLC., a clearing broker dealer, Axos Invest, Inc., a registered investment advisor, and Axos Invest, LLC., an introducing broker dealer. With approximately $20.3 billion in consolidated assets, Axos Financial, Inc., through Axos Bank, provides consumer and business banking products through its low-cost distribution channels and affinity partners. Axos Clearing LLC (including its business division AAS), with approximately $34.8 billion of assets under custody and/or administration, and Axos Invest, Inc., provide comprehensive securities clearing and custody services to introducing broker-dealers and registered investment advisor correspondents, and digital investment advisory services to retail investors, respectively. Axos Financial, Inc.’s common stock is listed on the NYSE under the symbol “AX” and is a component of the Russell 2000® Index, the S&P SmallCap 600® Index, the KBW Nasdaq Financial Technology Index, and the Travillian Tech-Forward Bank Index. For more information on Axos Financial, Inc., please visit investors.axosfinancial.com.

Segment Reporting

The Company operates through two segments: Banking Business and Securities Business. In order to reconcile the two segments to the consolidated totals, the Company includes parent-only activities and intercompany eliminations. Inter-segment transactions are eliminated in consolidation and primarily include non-interest income earned by the Securities Business segment and non-interest expense incurred by the

Banking Business segment for cash sorting fees related to deposits sourced from Securities Business segment customers, as well as interest expense paid by the Banking Business segment to each of the wholly-owned subsidiaries of the Company and to the Company itself for their operating cash held on deposit with the Business Banking segment.

The following tables present the operating results of the segments and reconciliations:


	For the Three Months Ended June 30, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	201,770	$	5,556	$	(3,572)	$	203,754
Provision for loan losses	7,000		—		—		7,000
Non-interest income	10,306		37,640		(15,241)		32,705
Non-interest expense	95,579		27,648		(10,771)		112,456
Income (Loss) before income taxes	$	109,497	$	15,548	$	(8,042)	$	117,003


	For the Three Months Ended June 30, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	165,504	$	3,509	$	(3,603)	$	165,410
Provision for loan losses	6,000		—		—		6,000
Non-interest income	14,004		18,864		(5,768)		27,100
Non-interest expense	83,817		22,797		(1,821)		104,793
Income (Loss) before income taxes	$	89,691	$	(424)	$	(7,550)	$	81,717


	Twelve Months Ended June 30, 2023
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	776,294	$	21,042	$	(14,215)	$	783,121
Provision for loan losses	24,750		—		—		24,750
Non-interest income	42,260		141,107		(62,879)		120,488
Non-interest expense	390,911		102,572		(46,368)		447,115
Income (Loss) before income taxes	$	402,893	$	59,577	$	(30,726)	$	431,744


	Twelve Months Ended June 30, 2022
(Dollars in thousands)	Banking Business		Securities Business		Corporate/Eliminations		Axos Consolidated
Net interest income	$	597,833	$	17,580	$	(8,255)	$	607,158
Provision for loan losses	18,500		—		—		18,500
Non-interest income	60,881		64,069		(11,587)		113,363
Non-interest expense	274,079		84,014		3,969		362,062
Income (Loss) before income taxes	$	366,135	$	(2,365)	$	(23,811)	$	339,959

Use of Non-GAAP Financial Measures

In addition to the results presented in accordance with GAAP, this release includes the non-GAAP financial measures adjusted earnings, adjusted earnings per diluted common share, and tangible book value per common share. Non-GAAP financial measures have inherent limitations, may not be comparable to similarly titled measures used by other companies and are not audited. Readers should be aware of these limitations and should be cautious as to their reliance on such measures. As noted below with respect to each measure, we believe the non-GAAP financial measures disclosed in this release enhance investors’ understanding of our business and performance, and our management uses these non-GAAP measures when it internally evaluates the performance of our business and makes operating decisions. However,

these non-GAAP measures should not be considered in isolation, or as a substitute for GAAP basis financial measures.

We define “adjusted earnings”, a non-GAAP financial measure, as net income without the after-tax impact of non-recurring acquisition-related costs (including amortization of intangible assets related to acquisitions) and other costs (unusual or non-recurring charges). Adjusted earnings per diluted common share (“adjusted EPS”), a non-GAAP financial measure, is calculated by dividing non-GAAP adjusted earnings by the average number of diluted common shares outstanding during the period. We believe the non-GAAP measures of adjusted earnings and adjusted EPS provide useful information about Axos’ operating performance. We believe excluding the non-recurring acquisition-related costs and other costs provides investors with an alternative understanding of Axos’ core business.

Below is a reconciliation of net income, the nearest comparable GAAP measure, to adjusted earnings and adjusted EPS (Non-GAAP) for the periods shown:


	Three Months Ended				Twelve Months Ended
	June 30,				June 30,
(Dollars in thousands, except per share amounts)	2023		2022		2023		2022
Net income	$	87,356	$	57,896	$	307,165	$	240,716
Acquisition-related costs	2,779		2,745		10,948		11,355

Other costs1	—		10,975		16,000		10,975
Income taxes	(704)		(4,000)		(7,776)		(6,519)
Adjusted earnings (Non-GAAP)	$	89,431	$	67,616	$	326,337	$	256,527

Average dilutive common shares outstanding	59,707,871		60,508,304		60,566,854		60,610,954

Diluted EPS	$	1.46	$	0.96	$	5.07	$	3.97
Acquisition-related costs	0.05		0.05		0.18		0.19
Other costs1	—		0.18		0.27		0.18
Income taxes	(0.01)		(0.07)		(0.13)		(0.11)
Adjusted EPS (Non-GAAP)	$	1.50	$	1.12	$	5.39	$	4.23

1 Other costs for the twelves months ended June 30, 2023 reflect an accrual in the first quarter of 2023 as a result of adverse legal judgment that has not been finalized. Other costs for the three and twelve months ended June 30, 2022 reflect a one-time resolution of a contractual claim.

We define “tangible book value”, a non-GAAP financial measure, as book value adjusted for goodwill and other intangible assets. Tangible book value is calculated using common stockholders’ equity minus mortgage servicing rights, goodwill and other intangible assets. Tangible book value per common share, a non-GAAP financial measure, is calculated by dividing tangible book value by the common shares outstanding at the end of the period. We believe tangible book value per common share is useful in evaluating the Company’s capital strength, financial condition, and ability to manage potential losses.

Below is a reconciliation of total stockholders’ equity to tangible book value per common share (Non-GAAP) as of the dates indicated:


	June 30,
(Dollars in thousands, except per share amounts)		2023		2022


Common stockholders’ equity		$	1,917,159	$	1,642,973
Less: mortgage servicing rights, carried at fair value		25,443		25,213
Less: goodwill and other intangible assets		152,149		156,405
Tangible common stockholders’ equity (Non-GAAP)		$	1,739,567	$	1,461,355

Common shares outstanding at end of period		58,943,035		59,777,949

Book value per common share		$	32.53	$	27.48
Less: mortgage servicing rights, carried at fair value per common share		0.44		0.42
Less: goodwill and other intangible assets per common share		2.58		2.61
Tangible book value per common share (Non-GAAP)		$	29.51	$	24.45

Forward-Looking Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties, including without limitation statements relating to Axos’ financial prospects and other projections of its performance and asset quality, Axos’ deposit balances and capital ratios, Axos’ ability to continue to grow profitably and increase its business, Axos’ ability to continue to diversify its lending and deposit franchises, the anticipated timing and financial performance of other offerings, initiatives, and acquisitions, expectations of the environment in which Axos operates and projections of future performance. These forward-looking statements are made on the basis of the views and assumptions of management regarding future events and performance as of the date of this press release. Actual results and the timing of events could differ materially from those expressed or implied in such forward-looking statements as a result of risks and uncertainties, including without limitation Axos’ ability to successfully integrate acquisitions and realize the anticipated benefits of the transactions, changes in the interest rate environment, monetary policy, inflation, government regulation, general economic conditions, changes in the competitive marketplace, conditions in the real estate markets in which we operate, risks associated with credit quality, our ability to attract and retain deposits and access other sources of liquidity, and the outcome and effects of litigation and other factors beyond our control. These and other risks and uncertainties detailed in Axos’ periodic reports filed with the Securities and Exchange Commission, including its 2022 Form 10-K, as supplemented by its Quarterly Report on Form 10-Q for the period ended December 31, 2022, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Axos undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. All written and oral forward-looking statements made in connection with this press release, which are attributable to us or persons acting on Axos’ behalf are expressly qualified in their entirety by the foregoing information.

Investor Relations Contact:

Johnny Lai, CFA

SVP, Corporate Development & Investor Relations

(858) 649-2218

[email protected]

The following tables set forth certain selected financial data concerning the periods and the dates indicated:

AXOS FINANCIAL, INC.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited – dollars in thousands)


(Dollars in thousands)	June 30, 2023			June 30, 2022			June 30, 2021
Selected Balance Sheet Data:
Total assets	$	20,348,469		$	17,401,165		$	14,265,565
Loans—net of allowance for credit losses	16,456,728			14,091,061			11,414,814
Loans held for sale, carried at fair value	23,203			4,973			29,768
Loans held for sale, lower of cost or fair value	776			10,938			12,294
Allowance for credit losses - loans	166,680			148,617			132,958
Securities—trading	758			1,758			1,983
Securities—available-for-sale	232,350			262,518			187,335

Securities borrowed	134,339			338,980			619,088
Customer, broker-dealer and clearing receivables	374,074			417,417			369,815
Total deposits	17,123,108			13,946,422			10,815,797

Advances from the FHLB	90,000			117,500			353,500
Borrowings, subordinated notes and debentures	361,779			445,244			221,358
Securities loaned	159,832			474,400			728,988
Customer, broker-dealer and clearing payables	445,477			511,654			535,425
Total stockholders’ equity	1,917,159			1,642,973			1,400,936

Capital Ratios:
Equity to assets at end of period	9.42		%	9.44		%	9.82		%
Axos Financial, Inc.:
Tier 1 leverage capital to adjusted average assets	8.96		%	9.25		%	8.82		%
Common equity tier 1 capital (to risk-weighted assets)	10.94		%	9.86		%	11.36		%
Tier 1 capital (to risk-weighted assets)	10.94		%	9.86		%	11.36		%
Total capital (to risk-weighted assets)	13.82		%	12.73		%	13.78		%
Axos Bank:
Tier 1 leverage capital to adjusted average assets	9.68		%	10.65		%	9.45		%
Common equity tier 1 capital (to risk-weighted assets)	11.63		%	11.24		%	12.28		%
Tier 1 capital (to risk-weighted assets)	11.63		%	11.24		%	12.28		%
Total capital (to risk-weighted assets)	12.50		%	12.01		%	13.21		%
Axos Clearing, LLC:
Net capital	$	35,221		$	38,915		$	35,950
Excess capital	$	29,905		$	32,665		$	27,904
Net capital as a percentage of aggregate debit items	13.25		%	12.45		%	8.94		%
Net capital in excess of 5% aggregate debit items	$	21,930		$	23,290		$	15,836

AXOS FINANCIAL, INC.

SELECTED CONSOLIDATED FINANCIAL INFORMATION

(Unaudited – dollars in thousands, except per share data)


	At or for the Three Months Ended						At or for the Fiscal Year Ended
	June 30,						June 30,
(Dollars in thousands, except per share data)	2023			2022			2023			2022
Selected Income Statement Data:
Interest and dividend income	$	346,430		$	184,161		$	1,157,138		$	659,728
Interest expense	142,676			18,751			374,017			52,570
Net interest income	203,754			165,410			783,121			607,158
Provision for credit losses	7,000			6,000			24,750			18,500
Net interest income after provision for loan losses	196,754			159,410			758,371			588,658
Non-interest income	32,705			27,100			120,488			113,363
Non-interest expense	112,456			104,793			447,115			362,062
Income before income tax expense	117,003			81,717			431,744			339,959
Income tax expense	29,647			23,821			124,579			99,243
Net income	$	87,356		$	57,896		$	307,165		$	240,716


Per Share Data:
Net income:
Basic	$	1.48		$	0.97		$	5.15		$	4.04
Diluted	$	1.46		$	0.96		$	5.07		$	3.97
Adjusted earnings per common share (Non-GAAP)1	$	1.50		$	1.12		$	5.39		$	4.23
Book value	$	32.53		$	27.48		$	32.53		$	27.48
Tangible book value per common share (Non-GAAP)1	$	29.51		$	24.45		$	29.51		$	24.45

Weighted average number of shares outstanding:
Basic	58,981,372			59,665,041			59,691,541			59,523,626
Diluted	59,707,871			60,508,304			60,566,854			60,610,954
Common shares outstanding at end of period	58,943,035			59,777,949			58,943,035			59,777,949
Common shares issued at end of period	69,465,446			68,859,722			69,465,446			68,859,722

Performance Ratios and Other Data:
Loan originations for investment	$	2,216,764		$	3,152,064		$	8,452,215		$	10,366,796
Loan originations for sale	$	95,788		$	86,873		$	254,288		$	656,487

Return on average assets	1.73		%	1.40		%	1.64		%	1.57		%
Return on average common stockholders’ equity	18.60		%	14.13		%	17.22		%	15.61		%
Interest rate spread2	3.20		%	3.86		%	3.44		%	3.91		%
Net interest margin3	4.19		%	4.19		%	4.35		%	4.13		%
Net interest margin3 - Banking Business Segment	4.26		%	4.45		%	4.48		%	4.36		%
Efficiency ratio4	47.56		%	54.44		%	49.48		%	50.25		%
Efficiency ratio4 - Banking Business Segment	45.07		%	46.69		%	47.76		%	41.61		%

Asset Quality Ratios:
Net annualized charge-offs to average loans	0.04		%	0.02		%	0.04		%	0.02		%

Non-performing loans and leases to total loans	0.52		%	0.83		%	0.52		%	0.83		%
Non-performing assets to total assets	0.47		%	0.68		%	0.47		%	0.68		%
Allowance for credit losses - loans to total loans held for investment	1.00		%	1.04		%	1.00		%	1.04		%
Allowance for credit losses - loans to non-performing loans	191.23		%	125.74		%	191.23		%	125.74		%

1 See “Use of Non-GAAP Financial Measures” herein.

2 Interest rate spread represents the difference between the annualized weighted average yield on interest-earning assets and the annualized weighted average rate paid on interest-bearing liabilities.

3 Net interest margin represents annualized net interest income as a percentage of average interest-earning assets.

4 Efficiency ratio represents non-interest expense as a percentage of the aggregate of net interest income and non-interest income.

AXOS FINANCIAL, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)


	At June 30,
(Dollars in thousands, except par and stated value)	2023		2022
ASSETS
Cash and cash equivalents	$	2,233,027	$	1,202,587
Cash segregated for regulatory purposes	149,059		372,112


Total cash, cash equivalents, cash segregated	2,382,086		1,574,699
Securities:
Trading	758		1,758
Available-for-sale	232,350		262,518

Stock of regulatory agencies	21,510		20,368
Loans held for sale, carried at fair value	23,203		4,973
Loans held for sale, lower of cost or fair value	776		10,938
Loans—net of allowance for credit losses of $166,680 as of June 2023 and $148,617 as of June 2022	16,456,728		14,091,061




Mortgage servicing rights, carried at fair value	25,443		25,213

Securities borrowed	134,339		338,980
Customer, broker-dealer and clearing receivables	374,074		417,417
Goodwill and other intangible assets—net	152,149		156,405
Other assets	545,053		496,835

TOTAL ASSETS	$	20,348,469	$	17,401,165

LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing	$	2,898,150	$	5,033,970
Interest bearing	14,224,958		8,912,452
Total deposits	17,123,108		13,946,422

Advances from the Federal Home Loan Bank	90,000		117,500
Borrowings, subordinated notes and debentures	361,779		445,244


Securities loaned	159,832		474,400
Customer, broker-dealer and clearing payables	445,477		511,654
Accounts payable and other liabilities	251,114		262,972
Total liabilities	18,431,310		15,758,192

STOCKHOLDERS’ EQUITY:




Common stock—$0.01 par value; 150,000,000 shares authorized, 69,465,446 shares issued and 58,943,035 shares outstanding as of June 30, 2023; 68,859,722 shares issued and 59,777,949 shares outstanding as of June 30, 2022	695		689
Additional paid-in capital	479,878		453,784
Accumulated other comprehensive income (loss)—net of tax	(6,610)		(2,933)
Retained earnings	1,735,609		1,428,444
Treasury stock, at cost; 10,522,411 shares as of June 30, 2023 and 9,081,773 shares as of June 30, 2022	(292,413)		(237,011)
Total stockholders’ equity	1,917,159		1,642,973
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	20,348,469	$	17,401,165

S-1

AXOS FINANCIAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	For the Quarters Ended June 30,
(Dollars in thousands, except earnings per share)	2023		2022
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$	305,011	$	174,110
Securities borrowed and customer receivables	4,815		4,462
Investments and other	36,604		5,589
Total interest and dividend income	346,430		184,161
INTEREST EXPENSE:
Deposits	137,189		11,179
Advances from the Federal Home Loan Bank	523		1,663
Securities loaned	356		503
Other borrowings	4,608		5,406
Total interest expense	142,676		18,751
Net interest income	203,754		165,410
Provision for credit losses	7,000		6,000
Net interest income, after provision for credit losses	196,754		159,410
NON-INTEREST INCOME:







Broker-dealer fee income	13,768		4,912
Advisory fee income	7,503		8,152
Banking and service fees	7,838		6,308
Mortgage banking income	1,988		3,498
Prepayment penalty fee income	1,608		4,230
Total non-interest income	32,705		27,100
NON-INTEREST EXPENSE:
Salaries and related costs	54,509		43,541
Data processing	16,095		13,594
Depreciation and amortization	5,665		6,022
Advertising and promotional	8,095		3,449
Professional services	5,979		7,649
Occupancy and equipment	4,037		3,480
FDIC and regulatory fees	4,371		3,967
Broker-dealer clearing charges	3,509		3,940

General and administrative expense	10,196		19,151
Total non-interest expense	112,456		104,793
INCOME BEFORE INCOME TAXES	117,003		81,717
INCOME TAXES	29,647		23,821
NET INCOME	$	87,356	$	57,896

COMPREHENSIVE INCOME	$	86,319	$	56,896
Basic earnings per share	$	1.48	$	0.97
Diluted earnings per share	$	1.46	$	0.96

S-2

AXOS FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Year Ended June 30,
(Dollars in thousands, except earnings per share)	2023		2022		2021
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$	1,048,874	$	626,628	$	584,410
Securities borrowed and customer receivables	18,657		20,512		20,466
Investments and other	89,607		12,588		12,987
Total interest and dividend income	1,157,138		659,728		617,863
INTEREST EXPENSE:
Deposits	339,481		33,620		60,529
Advances from the Federal Home Loan Bank	12,644		4,625		4,672
Securities loaned	3,673		1,124		1,496
Other borrowings	18,219		13,201		12,424
Total interest expense	374,017		52,570		79,121
Net interest income	783,121		607,158		538,742
Provision for credit losses	24,750		18,500		23,750
Net interest income, after provision for credit losses	758,371		588,658		514,992
NON-INTEREST INCOME:







Broker-dealer fee income	46,503		22,880		26,317
Advisory fee income	28,324		29,230		—

Banking and service fees	32,938		28,752		29,137
Mortgage banking income	7,101		19,198		42,641
Prepayment penalty fee income	5,622		13,303		7,166
Total non-interest income	120,488		113,363		105,261
NON-INTEREST EXPENSE:
Salaries and related costs	204,271		167,390		152,576
Data processing	60,557		50,159		40,719
Depreciation and amortization	23,387		24,596		24,124
Advertising and promotional	37,150		13,580		14,212
Professional services	29,268		22,482		22,241
Occupancy and equipment	15,647		13,745		13,402
FDIC and regulatory fees	15,534		11,823		10,603
Broker-dealer clearing charges	13,433		15,184		11,152

General and administrative expense	47,868		43,103		25,481
Total non-interest expense	447,115		362,062		314,510
INCOME BEFORE INCOME TAXES	431,744		339,959		305,743
INCOME TAXES	124,579		99,243		90,036
NET INCOME	$	307,165	$	240,716	$	215,707

COMPREHENSIVE INCOME	$	303,488	$	235,276	$	219,151
Basic earnings per share	$	5.15	$	4.04	$	3.64
Diluted earnings per share	$	5.07	$	3.97	$	3.56

S-3

AXOS FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Year Ended June 30,
(Dollars in thousands)	2023		2022		2021
NET INCOME	$	307,165	$	240,716	$	215,707
Net unrealized gain (loss) from available-for-sale securities, net of tax expense (benefit) of $(1,575), $(2,416), and $1,495 for the years ended June 30, 2023, 2022 and 2021, respectively.	(3,677)		(5,440)		3,444


Other comprehensive income (loss)	$	(3,677)	$	(5,440)	$	3,444
COMPREHENSIVE INCOME	$	303,488	$	235,276	$	219,151

S-4

AXOS FINANCIAL, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)


	Preferred Stock			Common Stock					Additional Paid-in Capital		Accumulated Other Comprehensive Income (Loss), Net of Income Tax		Retained Earnings		Treasury Stock		Total
				Number of Shares
(Dollars in thousands)	Shares	Amount		Issued	Treasury	Outstanding	Amount
Balance as of June 30, 2020	515	$	5,063	67,323,053	(7,710,418)	59,612,635	$	673	$	411,873	$	(937)	$	1,009,299	$	(195,125)	$	1,230,846
Cumulative effect of change in accounting principle net of tax, adoption of ASU No. 2016-13	—	—		—	—	—	—		—		—		(37,088)		—		(37,088)
Net income	—	—		—	—	—	—		—		—		215,707		—		215,707
Other comprehensive income (loss)	—	—		—	—	—	—		—		3,444		—		—		3,444
Cash dividends on preferred stock	—	—		—	—	—	—		—		—		(103)		—		(103)

Preferred stock - Series A redemption	(515)	(5,063)		—	—	—	—		—		—		(87)		—		(5,150)
Purchase of treasury stock	—	—		—	(753,597)	(753,597)	—		—		—		—		(16,757)		(16,757)

Stock-based compensation activity	—	—		746,268	(287,362)	458,906	8		20,677		—		—		(10,648)		10,037
Balance as of June 30, 2021	—	$	—	68,069,321	(8,751,377)	59,317,944	$	681	$	432,550	$	2,507	$	1,187,728	$	(222,530)	$	1,400,936

Net income	—	—		—	—	—	—		—		—		240,716		—		240,716
Other comprehensive income (loss)	—	—		—	—	—	—		—		(5,440)		—		—		(5,440)




Stock-based compensation activity	—	—		790,401	(330,396)	460,005	8		21,234		—		—		(14,481)		6,761
Stock option exercises and tax benefits	—	—		—	—	—	—		—		—		—		—		—
Balance as of June 30, 2022	—	$	—	68,859,722	(9,081,773)	59,777,949	$	689	$	453,784	$	(2,933)	$	1,428,444	$	(237,011)	$	1,642,973

Net income	—	—		—	—	—	—		—				307,165		—		307,165
Other comprehensive income (loss)	—	—		—	—	—	—		—		(3,677)		—		—		(3,677)




Purchase of treasury stock	—	—		—	(1,321,161)	(1,321,161)	—		—		—		—		(49,258)		(49,258)


Stock-based compensation activity	—	—		605,724	(119,477)	486,247	6		26,094		—		—		(6,144)		19,956

Balance as of June 30, 2023	—	$	—	69,465,446	(10,522,411)	58,943,035	$	695	$	479,878	$	(6,610)	$	1,735,609	$	(292,413)	$	1,917,159

S-5


AXOS FINANCIAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


	Year Ended June 30,
(Dollars in thousands)	2023		2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	307,165	$	240,716	$	215,707
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	23,387		24,596		24,124
Other accretion and amortization	(1,616)		3,933		4,752
Stock-based compensation expense	26,100		21,242		20,685
Trading activity	1,000		225		(1,878)
Provision for credit losses	24,750		18,500		23,750
Deferred income taxes	(19,586)		(9,400)		(8,828)
Origination of loans held for sale	(254,288)		(656,487)		(1,608,700)
Unrealized and realized gains on loans held for sale	(7,999)		(16,237)		(41,172)
Proceeds from sale of loans held for sale	242,772		689,530		1,671,515
Amortization and change in fair value of mortgage servicing rights	634		(2,228)		6,319










Net change in assets and liabilities which provide (use) cash:
Securities borrowed	204,641		280,108		(396,720)
Customer, broker-dealer and clearing receivables	43,342		(43,925)		(149,549)
Other Assets	(13,724)		(107,314)		(7,460)
Securities loaned	(314,568)		(254,588)		473,043
Customer, broker-dealer and clearing payables	(66,177)		(23,771)		187,811
Accounts payable and other liabilities	(7,874)		45,382		(817)



Net cash provided by operating activities	$	187,959	$	210,282	$	412,582
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale investment securities	(32,669)		(143,733)		(122,338)
Proceeds from sale and repayment of available-for-sale investment securities	57,989		131,868		74,667
Purchase of stock of regulatory agencies	(108,724)		(54,350)		(305)
Proceeds from redemption of stock of regulatory agencies	108,724		54,350		920
Origination of loans held for investment	(8,346,443)		(10,325,104)		(5,761,303)
Proceeds from sale of loans originally classified as held for investment	14,185		106,324		80,049
Mortgage warehouse loan activity, net	30,773		333,562		(139,806)
Proceeds from sale of other real estate owned and repossessed assets	4,167		8,654		1,586
Proceeds from BOLI claim settlement	2,778		—		—
Acquisition of business activity, net of cash acquired	(5,531)		(54,597)		—
Purchase of loans and leases, net of discounts and premiums	(1,564)		(33,085)		(3,619)
Principal repayments on loans	5,916,179		7,220,931		5,013,817
Purchases of furniture, equipment, software and intangibles	(30,215)		(21,504)		(10,437)



Net cash used in investing activities	$	(2,390,351)	$	(2,776,684)	$	(866,769)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in deposits	3,176,686		3,130,625		(520,897)

Repayments of the Federal Home Loan Bank term advances	(27,500)		(50,000)		(70,000)
Net (repayment) proceeds of Federal Home Loan Bank other advances	—		(186,000)		181,000
Net (repayment) proceeds of other borrowings	(84,300)		75,300		14,700
Redemption of subordinated notes	—		—		(51,000)
Repayment of Paycheck Protection Program Liquidity Facility advances	—		—		(151,952)
Tax payments related to settlement of restricted stock units	(6,144)		(14,481)		(10,648)
Purchase of treasury stock	(48,963)		—		(16,757)
Redemption of Preferred Stock, Series A	—		—		(5,150)
Cash dividends paid on preferred stock	—		—		(103)
Payment of debt issuance costs	—		(2,120)		(2,748)
Proceeds from issuance of subordinated notes	—		150,000		175,000







Net cash provided by (used in) financing activities	$	3,009,779	$	3,103,324	$	(458,555)
NET CHANGE IN CASH AND CASH EQUIVALENTS	$	807,387	$	536,922	$	(912,742)
CASH AND CASH EQUIVALENTS—Beginning of year	$	1,574,699	$	1,037,777	$	1,950,519
CASH AND CASH EQUIVALENTS—End of year	$	2,382,086	$	1,574,699	$	1,037,777
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid on interest-bearing liabilities	$	368,311	$	50,269	$	77,995
Income taxes paid	131,365		99,701		92,506
Transfers to other real estate and repossessed vehicles from loans held for investment	12,664		2,134		1,903
Transfers from loans held for investment to loans held for sale	14,185		105,884		71,136
Transfers from loans held for sale to loans and leases held for investment	690		3,098		29,616



Operating lease liabilities from obtaining right of use assets	3,400		6,876		—


Impact of adoption of ASC 326 on retained earnings	—		—		37,088

Securities transferred from available-for-sale portfolio to other assets	—		—		70,751

S-6

LOANS & ALLOWANCE FOR CREDIT LOSSES

The following table sets forth the composition of the loan portfolio as of the dates indicated:


(Unaudited) (Dollars in thousands)	June 30, 2023		June 30, 2022

Single Family - Mortgage & Warehouse	$	4,173,833	$	3,988,462
Multifamily and Commercial Mortgage	3,082,225		2,877,680
Commercial Real Estate	6,199,818		4,781,044
Commercial & Industrial - Non-RE	2,639,650		2,028,128
Auto & Consumer	546,264		567,228
Other	10,236		11,134



Total gross loans	16,652,026		14,253,676
Allowance for credit losses - loans	(166,680)		(148,617)
Unaccreted premiums (discounts) and loan fees	(28,618)		(13,998)
Total net loans	$	16,456,728	$	14,091,061

S-7

SECURITIES

The amortized cost, carrying amount and fair value for the trading and available-for-sale securities at June 30, 2023 and June 30, 2022 were:


	June 30, 2023
	Trading		Available-for-sale
(Unaudited) (Dollars in thousands)	Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Mortgage-backed securities (MBS):
U.S agencies1	$	—	$	27,024	$	—	$	(3,077)	$	23,947
Non-agency2	—		210,271		711		(5,977)		205,005
Total mortgage-backed securities			237,295		711		(9,054)		228,952
Non-MBS:

Municipal	758		3,656		—		(258)		3,398
Asset-backed securities and structured notes	—		—		—		—		—
Total Non-MBS	758		3,656		—		(258)		3,398
Total debt securities	$	758	$	240,951	$	711	$	(9,312)	$	232,350


	June 30, 2022
	Trading		Available-for-sale
(Unaudited) (Dollars in thousands)	Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses		Fair Value
Mortgage-backed securities (MBS):
U.S agencies1	$	—	$	27,722	$	9	$	(2,406)	$	25,325
Non-agency2	—		187,616		1,832		(2,634)		186,814
Total mortgage-backed securities	—		215,338		1,841		(5,040)		212,139
Non-MBS:

Municipal	1,758		3,529		—		(281)		3,248
Asset-backed securities and structured notes	—		47,000		131		—		47,131
Total Non-MBS	1,758		50,529		131		(281)		50,379
Total debt securities	$	1,758	$	265,867	$	1,972	$	(5,321)	$	262,518

1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.

2 Private sponsors of securities collateralized primarily by first-lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by Alt-A or pay-option ARM mortgages.

S-8

DEPOSITS

The following table sets forth the composition of deposits by type and weighted average interest rate as of the dates indicated:


(Unaudited)	June 30, 2023				June 30, 2022
(Dollars in thousands)	Amount		Rate1		Amount		Rate1
Non-interest bearing	$	2,898,150	—	%	$	5,033,970	—	%
Interest bearing:
Demand	3,334,615		2.43	%	3,611,889		0.61	%
Savings	9,575,781		4.20	%	4,245,555		0.95	%
Total interest-bearing demand and savings	12,910,396		3.74	%	7,857,444		0.79	%
Time deposits:
$250 and under	932,436		3.72	%	651,392		1.22	%
Greater than $250	382,126		4.36	%	403,616		1.41	%
Total time deposits	1,314,562		3.91	%	1,055,008		1.25	%
Total interest bearing2	14,224,958		3.76	%	8,912,452		0.85	%
Total deposits	$	17,123,108	3.12	%	$	13,946,422	0.54	%

1. Based on weighted-average stated interest rates at end of period.

2. The total interest-bearing includes brokered deposits of $2,028.5 million and $1,032.7 million as of June 30, 2023 and June 30, 2022, respectively, of which $691 million and $250 million, respectively, are time deposits classified as $250,000 and under.

The number of deposit accounts at the end of each of the last two fiscal years is set forth below:


	At June 30,
	2023	2022
Non-interest-bearing	45,640	42,372
Interest-bearing checking and savings accounts	427,299	344,593
Time deposits	6,340	8,734
Total number of deposit accounts	479,279	395,699

S-9

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID

The following table presents information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin:


	For the Three Months Ended
	June 30,
	2023						2022
(Unaudited) (Dollars in thousands)	Average Balance1		Interest Income / Expense		Average Yields Earned / Rates Paid2		Average Balance1		Interest Income / Expense		Average Yields Earned / Rates Paid2
Assets:
Loans3,4	$	16,242,438	$	305,011	7.51	%	$	13,704,420	$	174,110	5.08	%

Interest-earning deposits in other financial institutions	2,601,097		32,492		5.00	%	1,239,655		2,597		0.84	%
Mortgage-backed and other investment securities4	254,133		3,815		6.00	%	247,655		2,648		4.28	%
Securities borrowed and margin lending	355,687		4,815		5.41	%	592,234		4,462		3.01	%
Stock of the regulatory agencies	17,250		297		6.89	%	24,852		344		5.54	%
Total interest-earning assets	19,470,605		346,430		7.12	%	15,808,816		184,161		4.66	%
Non-interest-earning assets	715,554						776,659
Total assets	$	20,186,159					$	16,585,475
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings	$	12,507,836	$	123,146	3.94	%	$	7,007,335	$	8,379	0.48	%
Time deposits	1,418,347		14,043		3.96	%	1,012,705		2,800		1.11	%
Securities loaned	184,608		356		0.77	%	408,416		503		0.49	%

Advances from the FHLB	90,000		523		2.32	%	543,247		1,663		1.22	%
Borrowings, subordinated notes and debentures	357,645		4,608		5.15	%	448,548		5,406		4.82	%
Total interest-bearing liabilities	14,558,436		142,676		3.92	%	9,420,251		18,751		0.80	%
Non-interest-bearing demand deposits	3,117,796						4,695,748
Other non-interest-bearing liabilities	631,415						829,995
Stockholders’ equity	1,878,512						1,639,481
Total liabilities and stockholders’ equity	$	20,186,159					$	16,585,475
Net interest income			$	203,754					$	165,410
Interest rate spread6					3.20	%					3.86	%
Net interest margin7					4.19	%					4.19	%

1 Average balances are obtained from daily data.

2 Annualized.

3 Loans include loans held for sale, loan premiums and unearned fees.

4 Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees.

5 Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the unaudited condensed consolidated balance sheets.

6 Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

7 Net interest margin represents net interest income as a percentage of average interest-earning assets.

S-10

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID

The following tables set forth, for the periods indicated, information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin:


	For the Fiscal Years Ended June 30,
	2023						2022						2021
(Unaudited) (Dollars in thousands)	Average Balance1		Interest Income / Expense		Average Yields Earned / Rates Paid		Average Balance1		Interest Income / Expense		Average Yields Earned / Rates Paid		Average Balance1		Interest Income / Expense		Average Yields Earned / Rates Paid
Assets:
Loans2,3	$	15,571,290	$	1,048,874	6.74	%	$	12,576,873	$	626,628	4.98	%	$	11,332,020	$	584,410	5.16	%

Interest-earning deposits in other financial institutions	1,761,902		73,467		4.17	%	1,233,983		4,501		0.36	%	1,600,811		2,185		0.14	%
Mortgage-backed and other investment securities3	259,473		14,669		5.65	%	176,951		6,952		3.93	%	192,420		9,560		4.97	%
Securities borrowed and margin lending4	388,386		18,657		4.80	%	687,363		20,512		2.98	%	613,735		20,466		3.33	%
Stock of the regulatory agencies	20,936		1,471		7.03	%	21,844		1,135		5.20	%	20,588		1,242		6.03	%
Total interest-earning assets	18,001,987		1,157,138		6.43	%	14,697,014		659,728		4.49	%	13,759,574		617,863		4.49	%
Non-interest-earning assets	735,783						658,494						394,085
Total assets	$	18,737,770					$	15,355,508					$	14,153,659
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings	$	10,211,737	$	305,655	2.99	%	$	6,773,321	$	20,053	0.30	%	$	7,204,698	$	29,031	0.40	%
Time deposits	1,225,537		33,826		2.76	%	1,226,774		13,567		1.11	%	1,825,795		31,498		1.73	%
Securities loaned	303,932		3,673		1.21	%	469,051		1,124		0.24	%	412,385		1,496		0.36	%

Advances from the FHLB	423,612		12,644		2.98	%	349,796		4,625		1.32	%	211,077		4,672		2.21	%
Borrowings, subordinated notes and debentures	362,733		18,219		5.02	%	302,454		13,201		4.36	%	340,699		12,424		3.65	%
Total interest-bearing liabilities	12,527,551		374,017		2.99	%	9,121,396		52,570		0.58	%	9,994,654		79,121		0.79	%
Non-interest-bearing demand deposits	3,730,524						3,927,195						2,182,009
Other non-interest-bearing liabilities	695,617						764,542						671,581
Stockholders’ equity	1,784,078						1,542,375						1,305,415
Total liabilities and stockholders’ equity	$	18,737,770					$	15,355,508					$	14,153,659
Net interest income			$	783,121					$	607,158					$	538,742
Interest rate spread5					3.44	%					3.91	%					3.70	%
Net interest margin6					4.35	%					4.13	%					3.92	%

1 Average balances are obtained from daily data.

2 Loans include loans held for sale, loan premiums and unearned fees.

3 Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees. y.

4 Margin lending is the significant component of the asset titled customer, broker-dealer and clearing receivables on the unaudited condensed consolidated balance sheets.

5 Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

6 Net interest margin represents net interest income as a percentage of average interest-earning assets.

S-11

AVERAGE BALANCES, NET INTEREST INCOME, YIELDS EARNED AND RATES PAID

BANKING BUSINESS

The following table presents our Banking Business segment’s information regarding (i) average balances; (ii) the total amount of interest income from interest-earning assets and the weighted average yields on such assets; (iii) the total amount of interest expense on interest-bearing liabilities and the weighted average rates paid on such liabilities; (iv) net interest income; (v) interest rate spread; and (vi) net interest margin for the three months ended June 30, 2023 and 2022:


	For the Three Months Ended
	June 30,
	2023						2022
(Dollars in thousands)	Average Balance1		Interest Income/ Expense		Average Yields Earned/Rates Paid2		Average Balance1		Interest Income/ Expense		Average Yields Earned/Rates Paid2
Assets:
Loans3, 4	$	16,220,701	$	304,676	7.51	%	$	13,672,947	$	173,334	5.07	%
Interest-earning deposits in other financial institutions	2,438,379		30,693		5.03	%	929,695		1,993		0.86	%
Mortgage-backed and other investment securities4	260,538		3,850		5.91	%	265,080		2,745		4.14	%
Stock of the regulatory agencies	17,250		295		6.84	%	21,734		344		6.33	%
Total interest-earning assets	18,936,868		339,514		7.17	%	14,889,456		178,416		4.79	%
Non-interest-earning assets	371,710						298,721
Total assets	$	19,308,578					$	15,188,177
Liabilities and Stockholders’ Equity:
Interest-bearing demand and savings	$	12,570,893	$	123,178	3.92	%	$	7,148,061	$	8,449	0.47	%
Time deposits	1,418,347		14,043		3.96	%	1,012,705		2,800		1.11	%

Advances from the FHLB	90,000		523		2.32	%	543,247		1,663		1.22	%
Borrowings, subordinated notes and debentures	34		—		—	%	33		—		—	%
Total interest-bearing liabilities	14,079,274		137,744		3.91	%	8,704,046		12,912		0.59	%
Non-interest-bearing demand deposits	3,177,475						4,770,915
Other non-interest-bearing liabilities	192,007						139,753
Stockholders’ equity	1,859,822						1,573,463
Total liabilities and stockholders’ equity	$	19,308,578					$	15,188,177
Net interest income			$	201,770					$	165,504
Interest rate spread5					3.26	%					4.20	%
Net interest margin6					4.26	%					4.45	%

1. Average balances are obtained from daily data.

2. Annualized.

3. Loans include loans held for sale, loan premiums and unearned fees.

4. Interest income includes reductions for amortization of loan and investment securities premiums and earnings from accretion of discounts and loan fees.

5 Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average rate paid on interest-bearing liabilities.

6 Net interest margin represents net interest income as a percentage of average interest-earning assets.

S-12

SECURITIES BUSINESS

The following table provides selected information for Axos Clearing LLC as of each period indicated:


(Dollars in thousands)	June 30, 2023		June 30, 2022

FDIC insured deposit program balances at banks	$	1,627,053	$	3,452,358



Cash reserves for the benefit of customers	$	149,059	$	372,112




Securities lending:
Interest-earning assets – stock borrowed	$	134,339	$	338,980
Interest-bearing liabilities – stock loaned	$	159,832	$	474,400

S-13

Axos Q4 Fiscal 2023 Earnings Supplement July 27, 2023 NYSE: AX

1 Loan Growth by Category for Third Quarter Ended June 30, 2023 $ millions Q4 FY23 Q3 FY23 Inc (Dec) $3,924 $3,925 (1) 250 162 88 2,236 2,245 (9) 846 838 8 5,346 4,952 394 854 842 12 1,696 1,598 98 116 121 (5) 828 736 92 476 518 (42) 70 77 (7) 10 6 4 $16,652 $16,020 $632 Jumbo Mortgage SF Warehouse Lending Multifamily Small Balance Commercial CRE Specialty Lender Finance RE Lender Finance Non-RE Equipment Leasing Asset-Based Lending Auto Unsecured/OD Single Family Mortgage & Warehouse Multifamily & Commercial Mortgage Commercial Real Estate Commercial & Industrial Non-RE Auto & Consumer Other Loans

CRE Specialty Detail as of June 30, 2023 Loan Type Balance (mm) Weighted Avg. LTV Non-Performing Loans (mm) Multifamily $1,746 41% $0 SFR 1,059 42 15 Hotel 921 41 0 Office 552 36 0 Industrial 475 43 0 Other 339 36 0 Retail 254 41 0 Total $5,346 40% $15 <=50% > 50% to 60% >60% to 65% > 65% 80% 15% 2% 3% LTV Distribution 2

Fixed/Hybrid Years to Maturity / Repricing*Mix of Loan Repricing Types Variable 59% Hybrid 34% Fixed 7% 409 880 2,028 2,993 5,526 6,573 6,583 6,632 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 1/2 1 2 3 5 10 20 >20 Years $M 7% 13% 32% 49% 100%100%99%89% *Excludes SF Warehouse Lending and Equipment Leasing. The years to repricing assumes no loan prepayments and reflects only contractual terms. Interest Rate Components of Loan & Lease Portfolio At June 30, 2023 3 Of the fixed and hybrid rate loan balances in our portfolio at June 30, 2023, 49% will reprice within 3 years and 89% will reprice within 5 years

4 Consumer Direct Distribution Partners Small Business Banking Commercial / Treasury Management Axos Securities Specialty Deposits Fiduciary Services Diversified Deposit Gathering Business Lines ‹ Full service digital banking, wealth management, and securities trading ‹ White-label banking ‹ Business banking with simple suite of cash management services ‹ Fiduciary services for trustees ‹ 1031 exchange firms ‹ Title and escrow companies ‹ HOA and property management ‹ Serves approximately 40% of U.S. Chapter 7 bankruptcy trustees in exclusive relationship ‹ Software allows servicing of SEC receivers and non-chapter 7 cases ‹ Full service treasury/cash management ‹ Team enhancements and geographic expansion ‹ Bank and securities cross-sell ‹ Broker-dealer client cash ‹ Broker-dealer reserve accounts $1.1 B $1.0 B $9.5 B $0.7 B $0.3 B $3.5 B $1.0 B Diversified Deposit Gathering Approximately 90% of deposits are FDIC-insured or collateralized *Deposit balances as of 6/30/23 1Excludes approximately $600 million of off-balance sheet deposits 2Excludes approximately $700 million of client deposits held at other banks 1 2

Axos Advisor Services (AAS) Cash Sorting 5 ($895) ($383) ($188) ($1,000) ($900) ($800) ($700) ($600) ($500) ($400) ($300) ($200) ($100) $0 Q2 2023 Q3 2023 Q4 2023 Pace of AAS Cash Sorting Decline Has Decelerated ($ in millions)

Change in Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Reserve (UCL) ($ in millions) 161.3 (2.5) 0.9 7.0 166.7 10.5 10.5 120 130 140 150 160 170 March 31, 2023 ACL + UCL Gross Charge-offs Provisions for credit losses Gross Recoveries June 30, 2023 ACL + UCL UCLACL 6

7 Loan Balance Allowance for Credit Losses (ACL) by Loan Category as of June 30, 2023 Loans Single Family - Mortgage and Warehouse Multifamily & Commercial Mortgage Commercial Real Estate Auto & Consumer $ millions Other ACL $ ACL % Commercial & Industrial Non-RE $4,173.8 3,082.2 6,199.8 546.3 10.2 2,639.7 $16,652.0 16.8 72.8 13.2 0.1 46.3 $17.5 $166.7 1.00% 1.17% 0.55% 0.42% 0.14% 2.42% 1.76%

Credit Quality ($ millions) Non‐performing Loans Down Slightly from Prior Quarter 3/31/2023 Loans O/S NPLs % Single Family-Mortgage & Warehouse $4,087.5 $36.2 0.89% Multifamily and Commercial Mortgage 3,082.8 37.4 1.21 Commercial Real Estate 5,794.3 14.9 0.26 Commercial & Industrial - Non-RE 2,454.8 2.9 0.12 Auto & Consumer 594.6 2.0 0.34 Other 6.3 2.5 39.68 Total $16,020.3 $95.9 0.60% 6/30/2023 Loans O/S NPLs % Single Family-Mortgage & Warehouse $4,173.8 $30.7 0.74% Multifamily and Commercial Mortgage 3,082.2 35.1 1.14 Commercial Real Estate 6,199.8 14.9 0.24 Commercial & Industrial - Non-RE 2,639.7 3.0 0.11 Auto & Consumer 546.3 1.5 0.27 Other 10.2 2.0 19.61 Total $16,652.0 $87.2 0.52% Change at 6/30/2023 from 3/31/2023 Loans O/S NPLs Single Family-Mortgage & Warehouse $86.3 $(5.5) Multifamily and Commercial Mortgage (0.6) (2.3) Commercial Real Estate 405.5 (0.0) Commercial & Industrial - Non-RE 184.9 0.1 Auto & Consumer (48.3) (0.5) Other 3.9 (0.5) Total $631.7 $(8.7) 8

12 Greg Garrabrants, President and CEO Derrick Walsh, EVP and CFO Andy Micheletti, EVP of Finance [email protected] www.axosfinancial.com Johnny Lai, SVP Corporate Development and Investor Relations Phone: 858.649.2218 Mobile: 858.245.1442 [email protected] Contact Information




Delaware	001-37709	33-0867444
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value	AX	New York Stock Exchange


Exhibit						Description
99.1						Press Release
99.2						Financial Schedules
99.3						Press Release Earnings Supplement
99.4						Press Release Earnings Supplement PDF
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)